Shell

From The Times
March 18, 2009

Anger as Shell reduces renewables investment
Robin Pagnamenta, Energy and Environment Editor

Royal Dutch Shell provoked a furious backlash from campaigners yesterday when it announced plans to scale back its renewable energy business and focus purely on oil, gas and biofuels.
Jeroen van der Veer, the chief executive, said that Shell, the world's second-largest non-state-controlled oil company, was planning to drop all new investment in wind, solar and hydrogen energy.
“I don't expect them to grow much at Shell from here, due to portfolio fit and the returns outlook compared to other opportunities,” he said, speaking at the Anglo-Dutch group's annual strategy briefing.
He said that instead Shell would focus its remaining renewable energy investments on biofuels, where it is conducting research into “second generation” fuels, so far with little commercial success.

Linda Cook, who heads Shell's gas and power business, said that wind and solar power “struggle to compete with the other investment opportunities we have in our portfolio”.
The announcement, which comes as Shell is fighting to maintain its commitments on dividends (which it will increase by 5 per cent this year) and its core oil and gas business in the face of a more than $100 slide in the price of crude since last summer, triggered a furious response from green groups.

John Sauven, the executive director of Greenpeace UK, said that Shell had “rejoined the ranks of the dirtiest, most regressive corporations in the world ... After years of proclaiming their commitment to clean power, they're now pulling out of the technologies we need to see scaled up if we're to slash emissions.”

A spokesman for the Department for Energy and Climate Change said: “We believe renewables have a strong future as part of the UK and global energy mix in the fight against climate change.”
Shell has invested $1.7billion on alternative energy in the past five years, compared with total capital expenditure of $32billion this year. It holds stakes in 11 wind power projects, mostly in the United States, with the capacity to generate 1,100 megawatts of electricity. It also operates research programmes into thin-film solar and hydrogen technology.

Shell also said that it will maintain its spending on carbon capture and storage projects in Germany, Netherlands, Norway, Canada, Australia and America - most of which also receive state support.

Oil and gas ARE the future. Shell is just smarter then most to recognize the facts. Facts: global warming is a myth check the data no warming since '98, Fact: China/India are the growth engines of the future as the west fights myths and stupidity. China/India will run on fossil fuel.
Dan, Boise Idaho , USA.

They should be developing methods for separating hydrogen out cheaply and efficiently, so that the next generation of hydrogen fuel cell cars can be developed. Of course that won't happen until all the oil has run out and they are forced to go into this market.
Chris, Adelaide.

If the green power is so great why does Green Peace not invest time and resources. I am sure lots of supporters could be called upon to help with technical issues and suggest ways forward. If 1000 scientists get together on a project and have some financial backing then these projects should work.
joe, edinburgh, scotland.

Only way to get companies investing in "clean energy" is to offer govenment incentives. Easy choice if I was PM - tax oil companies HEAVILY, and provide tax breaks/incentives for the "green coys". Let market forces take over - I can't believe that a litre of petrol costs less than bottled water!
Dan Carroll, Brisbane, Oz.

The real problem is that there are no green energy solutions that are anywhere near commercially competitive. If governments want companies to invest in improving the technology they're going to have to make it worth their while. Green energy development will need tax driven support.
patrick, London,
The programmes for investigating renewable energy are expensive and produce low power output considering the expense. In addition, there is little world market for using them, except for western governments to postulate their green credentials. Wise choice from Shell. US Exxon wouldn't even bother.
Peter, Twickenham.

The problem is liquid fuels. Shell is making the right investment choice in this financial climate.
Ben Saunders, London, UK.